Desperate Atari US considers lay-offs, suspension of projects

Troubled publisher Atari US has expressed doubts about its ability to continue as a going concern, revealing it is considering radical measures to keep the company afloat. With the company unlikely to receive funding from parent Infogrames, it is considering suspending current development projects, laying off more staff and selling its remaining intellectual property.

Last week, Atari ended a production agreement with majority shareholder Infogrames, deciding instead to concentrate on publishing and distribution in the US. However, the company has stated that further action may be necessary, including axing jobs and stopping work on games already in development.